DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS
DIRECTOR'S OFFICE
ACCOUNTANCY – GENERAL RULES
Filed with the secretary of state on These rules become effective immediately after filing with the secretary of state unless adopted under section 33, 44, or 45a(9) of the administrative procedures act of 1969, 1969 PA 306, MCL 24.233, 24.244, or 24.245a. Rules adopted under these sections become effective 7 days after filing with the secretary of state.
(By authority conferred on the department of licensing and regulatory affairs by sections 205, 308, 721, 725, 726, 728, and 729 of the occupational code, 1980 PA 299, MCL 339.205, 339.308, 339.721, 339.725, 339.726, 339.728, and 339.729, and Executive Reorganization Order Nos. 1991-9, 1996-2, 2003-1, 2008-4, and 2011-4, MCL 338.3501, 445.2001, 445.2011, 445.2025, and 445.2030)
R 338.5101, R 338.5102, R 338.5110a, R 338.5111, R 338.5115, R 338.5116, R 338.5117, R 338.5210, R 338.5211, R 338.5215, R 338.5230, R 338.5255, and R 338.5501 of the Michigan Administrative Code are amended, as follows: PART 1. GENERAL PROVISIONS
R 338.5101 Definitions.
Rule 101. (1) As used in these rules:
(a) "Board" means the Michigan state
board of accountancy created under section 721 of the code, MCL 339.721.
(b) "Code" means the occupational code, 1980 PA 299, MCL 339.101 to 339.2677.
(c) "Continuing education period" means all or part of a year beginning July 1 and ending June 30.
(d) "Continuous instruction" means education time not including breakfast, lunch, or dinner periods, coffee breaks, or any other breaks in the program.
(e) "Disclose" means to provide a written
communication from a Certified Public Accountant (CPA) or a CPA firm informing
the client, before making a recommendation or referral, that the CPA or CPA
firm will receive a commission, referral fee, or contingency fee from a
third-party for recommendations or referrals of products or services, or both.
“CPA” means Certified Public Accountant.
(f) "Enterprise" means a person, persons, or
entity for which an individual licensee, a firm licensee, an individual with
practice privileges, or an out-of-state firm performs professional services.
"Disclose" means to provide a written communication from a CPA or
a CPA firm informing the client, before making a recommendation or referral,
that the CPA or CPA firm will receive a commission, referral fee, or
contingency fee from a third-party for recommendations or referrals of products
or services, or both.
(g) "Financial statements" means statements
and related footnotes that show financial position, results of operations, and
cash flows based on generally accepted accounting principles or another
comprehensive basis of accounting. The term does not include incidental
financial data included in management advisory services reports to support
recommendations to a client and does not include tax returns and supporting
schedules of tax returns. "Enterprise" means a person,
persons, or entity for which an individual licensee, a firm licensee, an
individual with practice privileges, or an out-of-state firm performs
professional services.
(h) "Generally accepted accounting
principles" means accounting principles issued by the applicable
nationally or internationally recognized professional standard setting
organization related to individual accounting engagements. "Financial
statements" means statements and related footnotes that show financial
position, results of operations, and cash flows based on generally accepted
accounting principles or another comprehensive basis of accounting. The term
does not include incidental financial data included in management advisory
services reports to support recommendations to a client and does not include
tax returns and supporting schedules of tax returns.
(i) "Generally accepted auditing standards"
means the standards of professional conduct, issued by the applicable
nationally or internationally recognized professional standard setting
organization, related to individual audit engagements. "Generally
accepted accounting principles" means accounting principles issued by the
applicable nationally or internationally recognized professional standard
setting organization related to individual accounting engagements.
(j) “Individual with practice privileges” means an
individual who practices in this state under section 727a of the code, MCL
339.727a. "Generally accepted auditing standards" means the
standards of professional conduct, issued by the applicable nationally or internationally
recognized professional standard setting organization, related to individual
audit engagements.
(k) “Nano-learning program” means a tutorial program
designed to allow a participant to learn a given subject in a 10-minute period
with electronic media and without interaction with a real-time instructor. “Individual
with practice privileges” means an individual who practices in this state under
section 727a of the code, MCL 339.727a.
(l) “Out-of-state firm” means a firm that may provide
certain services and use the title “CPA firm” without obtaining a Michigan firm
license under the conditions in section 728(4) and (5) of the code, MCL
339.728. “Nano-learning program” means a tutorial program designed to
allow a participant to learn a given content area in a 10-minute period with
electronic media and without interaction with a real-time instructor.
(m) "Professional engagement" means an
agreement between a client and an individual licensee, a firm licensee, an
individual with practice privileges, or an out-of-state firm relative to the
performance of professional services. “Out-of-state firm” means a firm
that may provide certain services and use the title “CPA firm” without
obtaining a Michigan firm license under the conditions in section 728(4) and
(5) of the code, MCL 339.728.
(n) "Professional
services" means any services performed or offered to be performed by an
individual licensee, a firm licensee, an individual with practice privileges,
or an out-of-state firm for a client in the course of the practice of public
accounting, under section 720 of the code, MCL 339.720. "Professional
engagement" means an agreement between a client and an individual
licensee, a firm licensee, an individual with practice privileges, or an
out-of-state firm relative to the performance of professional services.
(o) "Qualifying hours" means continuing
education hours that satisfy part 3 of these rules. "Professional
services" means any services performed or offered to be performed by an
individual licensee, a firm licensee, an individual with practice privileges,
or an out-of-state firm for a client in the course of the practice of public
accounting under section 720 of the code, MCL 339.720.
(p) "Qualifying hours" means continuing education hours that satisfy part 3 of these rules.
(2) A term defined in the code has the same meaning when used in these rules.
R 338.5102 Standards of professional practice adopted by reference.
Rule 102. (1) The following standards are approved and adopted by reference:
(a) The standards issued by the American Institute of
CPAs (AICPA), 220 Leigh Farm Road, Durham, North Carolina, 27707, set forth
in the publication titled “AICPA Professional Standards” updated June
1, 2021, June 15, 2022, and any statements issued as of the
effective date of this rule, which are available at a cost of $255.00 $289.00
from the institute’s website at https://future.aicpa.org/cpe-learning/publication
https://www.aicpa.org/cpe-learning/publication or at no cost from
the institute’s website at https://us.aicpa.org/research/standards.html.
https://us.aicpa.org/research/standards.
(b) The standards issued by the Public Company Accounting
Oversight Board (PCAOB), 1666 K Street NW, Suite 300, Washington,
District of Columbia, 20006, set forth in the publication entitled
titled “PCAOB Standards and Related Rules” 2021 2022 edition,
and any updates issued as of the effective date of this rule, which are
available at a cost of $205.00 $255.00 from the AICPA’s website
at https://future.aicpa.org/cpe-learning/publication https://www.aicpa.org/cpe-learning/publication
or at no cost from the AICPA’s website at https://pcaobus.org/oversight/standards.
(c) The auditing standards issued by the Government
Accountability Office, 441 G Street. St., NW, Washington,
District of Columbia, 20548, in the publication entitled titled "Government
Auditing Standards 2018 Revision" “Government Auditing Standards”
2018 Revision Technical Update April 2021, updated on April 14, 2021,
which are available at no cost on the Office’s website at https://www.gao.gov/yellowbook.
https://gaoinnovations.gov/yellowbook/.
(d) The standards issued by the International Auditing
and Assurance Standards Board (IAASB), 529 5th Avenue, New York, New
York, 10017, in the publication entitled titled “2020 2021
Handbook of International Quality Control, Auditing, Review, Other
Assurance, and Related Services and Pronouncements” issued on September
14, 2021, December 2, 2022, and any related pronouncements issued as
of the effective date of this rule, which are available at no cost from the
IAASB's website at https://www.iaasb.org/standards-pronouncements.
(e) The accounting standards issued by the Financial Accounting Standards Board
(FASB), 401 Merritt 7, 801 Main Avenue, P.O.
Box 5116, Norwalk, Connecticut, 06856, in the publication entitled titled
“FASB Accounting Standards Codification” as of June 24, 2021, December
2022, and any updates published as of the effective date of this rule,
which are available at no cost from the board’s website at https://asc.fasb.org.
(f) The accounting standards issued by the Governmental Accounting Standards Board
(GASB), 401 Merritt 7, 801 Main Avenue, P.O.
Box 5116, Norwalk, Connecticut, 06856, in the publication entitled titled
“GASB Codification” as of December 31, 2020, 2021, and any
pronouncements published as of the effective date of this rule, which are
available at no cost from the board’s website at https://www.gasb.org/home.
https://gars.gasb.org/.
(g) The accounting standards issued by the International Accounting Standards Board,
30 Cannon Street, London EC4M 6XH, United Kingdom, in the
publication entitled titled “2021 2022 International
Financial Reporting Standards IFRS®” issued on January 1, 2022, and any
pronouncements issued as of the effective date of this rule, which are
available at a cost of Ł79.00 Ł81.00 from the board’s website at http://www.ifrs.org.
(h) The United States Securities and Exchange Commission (SEC) rules contained in 17 CFR chapter 2 and the SEC’s Interpretative Releases and Policy Statements issued as of the effective date of this rule. The SEC rules may be obtained free of charge at http://www.ecfr.gov. The SEC’s Interpretative Releases and Policy Statements may be obtained free of charge at https://www.sec.gov.
(2) Copies of the standards adopted in this rule are available for inspection and distribution at the cost of 10 cents per page from the Department of Licensing and Regulatory Affairs, Bureau of Professional Licensing, 611 W. Ottawa Street, P.O. Box 30670, Lansing, Michigan, 48909.
(3) A licensee shall satisfy the applicable standards adopted in subrule (1) of this rule.
PART 2. LICENSURE REQUIREMENTS
R 338.5110a Uniform CPA exam procedures.
Rule 110a. The following procedures apply to the uniform CPA exam:
(a) Applicants may take the required exam sections individually and in any order.
(b) Applicants shall pass all sections of the exam within
a rolling 18-month 30-month period beginning on the date that
the score is released for that the first section is passed.
If all sections are not passed within the rolling 18-month 30-month period,
then credit for any section passed outside the 18-month 30-month period
expires and the section must be retaken.
(c) The department may extend the rolling 18-month 30-month
period under subdivision (b) of this rule due to the sickness of the
candidate or a member of the candidate’s immediate family if substantiated by a
doctor’s certificate or if the candidate provides the department with
proof, as directed by the department, verifying a death in the
candidate’s immediate family, temporary military service, or another good
reason acceptable to the department. A candidate shall make a request for an
extension within 90 days of the date of the exam. If extended, an applicant’s
exam does not count as a failure to write the exam.
(d) The department or the entity contracted with the department to administer the exam may allow a candidate to sit for the exam in another state if the candidate satisfies all the requirements for sitting for the exam under these rules.
(e) The department grants a candidate credit for exam
grades of 75 or higher earned in another state if the candidate satisfies the
educational requirements to sit for the exam and the board decides the exam is
was equivalent to the exam provided by the department.
(f) An applicant may retake an exam section after once
the applicant’s grade for any earlier attempt of the same exam section has been
released.
R 338.5111 Exam scores. Rule 111. (1) The minimum passing grade for each subject section is 75. (2) The department shall notify each candidate of the applicant’s grades within a reasonable time, but not later than 120 days after completion of the exam. (3) A candidate may appeal the grading of any paper to the department, in writing, within 30 days after grades are released.
R 338.5115 Educational requirements for the uniform CPA exam; approved educational
institutions; adoption of accreditation standards by reference.
(a) Completion of a curriculum required for a baccalaureate degree consisting of not less than 120 semester hours at a higher education institution approved under subrule (3) or (4) of this rule or considered substantially equivalent under subrule (5) of this rule.
(b) Completion of a concentration in accounting at a
higher education institution approved under subrule (3) or (4) of this rule or
considered substantially equivalent under subrule (5) of this rule, which includes
all both the accounting and general business subjects
requirements under subrule (2) of this rule.
(2) A concentration in accounting
must include all both the following accounting
and general business subjects: requirements:
(a) Three semester hours in auditing. Not less
than 24 semester hours of accounting courses in all the following accounting
content areas:
(i) Accounting information systems.
(ii) Auditing and attestation services.
(iii) Cost or managerial accounting.
(iv) Financial accounting and reporting.
(v) Governmental/fund accounting.
(vi) Taxation.
(b) Not less than 24 Twenty-four semester
hours of general business subjects, courses, other than
accounting, which may include study in any of
the following subjects: general business content areas:
(i) Business communications.
(ii) Business ethics.
(iii) Business law.
(iv) Economics.
(v) Finance.
(vi) Management.
(vii) Marketing.
(viii) Information systems or technology.
(ix) Quantitative methods.
(x) Statistics.
(xi) Other subjects general business content
areas approved by the department.
(c) Twenty-one semester hours of accounting principles
that must include study in each of the following areas:
(i) Financial accounting and accounting theory.
(ii) Managerial accounting, including cost
accounting.
(iii) Accounting systems and controls.
(iv) Taxation.
(v) Governmental/fund accounting.
(3) The standards for recognition of accrediting
organizations developed and adopted by the Council for Higher Education
Accreditation (CHEA), One Dupont Circle NW, Suite 510, Washington, D.C. 20036,
in the publication entitled titled “CHEA Standards and Procedures
for Recognition,” effective October 4, 2021, which are available at no cost on
the council’s website at https://www.chea.org, are approved and adopted
by reference. If a higher education institution is accredited by the
accrediting body of the region in which the institution is located and the
accrediting body satisfies the recognition standards of CHEA, then the
institution is approved.
(4) The criteria for recognition and the recognition process for the secretary’s recognition of accrediting agencies of the United States Department of Education, Office of Postsecondary Education, 400 Maryland Avenue SW, Washington, D.C. 20202, in 34 CFR 602.10 to 602.39, effective July 1, 2020, which are available at no cost on the department’s website at https://www2.ed.gov/about/offices/list/ope/index.html, are approved and adopted by reference. If a higher education institution is accredited by the accrediting body of the region in which the institution is located and the accrediting body satisfies the recognition criteria and process of the United States Department of Education, then the institution is approved.
(5) An individual who attended an unaccredited higher education institution shall establish that the applicant has completed educational requirements at a higher education institution that satisfies accreditation requirements substantially equivalent to those recognized in subrule (3) or (4) of this rule, by providing a credential evaluation completed by either the National Association of State Boards of Accountancy (NASBA) or a credential evaluation organization that is a current member of the National Association of Credential Evaluation Services (NACES).
(6) Copies of the standards and criteria approved and adopted by reference in this rule are available for inspection and distribution at a cost of 10 cents per page from the Board of Accountancy, Department of Licensing and Regulatory Affairs, Bureau of Professional Licensing, 611 W. Ottawa Street, P.O. Box 30670, Lansing, Michigan, 48909.
R 338.5116 Educational requirements for certificate of CPA.
Rule 116. (1) To satisfy section 725(1)(e) of the code, MCL 339.725, an individual shall provide proof, as directed by the department, verifying all the following requirements:
(a) Completion of not less than 150 semester hours at a higher education institution approved under R 338.5115(3) or (4) or considered substantially equivalent under R 338.5115(5).
(b) Completion of a baccalaureate degree or higher degree from a higher education institution approved under R 338.5115(3) or (4) or considered substantially equivalent under R 338.5115(5).
(c) Completion of a concentration in accounting under R
338.5115(1)(b) and R 338.5115(2) at a higher education institution
approved under R 338.5113(3) or (4) or considered substantially equivalent
under R 338.5115(5).
R 338.5117 Certificate of certified public accountant; qualifying experience requirement. Rule 117. (1) An applicant applying for a CPA certificate shall have obtained not less than 2,000 hours of qualifying experience within a period of not less than 1 calendar year nor more than 5 calendar years. (2) The department shall grant full credit for qualifying experience earned during a college or university internship, including the internships for which educational credit is provided. (3) The department shall regard instruction as qualifying experience, if the applicant has completed not less than 4 academic semesters of an academic appointment in accounting at an institution recognized by the department. An instructor who has an academic appointment in accounting shall teach, as the principal instructor, not less than 6 credit hours per semester of accounting subjects courses above the elementary level. PART 3. CONTINUING EDUCATION
R 338.5210 License renewals; continuing education requirements; applicability;
continuing education waiver; reciprocity.
Rule 210. (1) This part applies to applications for renewal of an accountancy license under sections 411 and 729 of the code, MCL 339.411 and 339.729. An applicant for renewal shall provide the required fee and a completed application on a form provided by the department. Both of the following standards apply:
(a) Under section 729(1) of the code, MCL 339.729, an
applicant for renewal who is a nonresident licensee as that term is defined in
section 720(1)(g) of the code, MCL 339.720, is considered to have met
the requirements under this part if the applicant satisfies all the following
requirements:
(i) Provides the required fee and a completed application on a form provided by the department.
(ii) The state in which the applicant’s principal place of business is located requires continuing education for renewal of that state’s accountancy license.
(iii) Meets the continuing education requirements of the state in which the applicant’s principal place of business is located.
(b) If audited, the applicant shall provide a copy of the license that was renewed by the state in which the applicant’s principal place of business is located.
(2) Submission of an application for renewal constitutes the applicant’s certification of compliance with the requirements of this rule. Both of the following standards apply:
(a) An applicant shall keep documentation required by R 338.5215 as proof, as directed by the department, verifying satisfaction of the requirements under this rule for 4 years after the date of applying for license renewal.
(b) A licensee is subject to audit under this part and
may have to provide the documentation as described by R 338.5215 upon on
request of the department.
(3) A request for a continuing education waiver under
section 204(2) of the code, MCL 339.204, must be received by the department
before the expiration date of the license. An applicant must submit a
request for a waiver of continuing education requirements to the department for
the board’s consideration not less than 30 days before the last regularly
scheduled board meeting before the expiration date of the license.
R 338.5211 Renewal of license with insufficient qualifying hours allowed under certain circumstances; waiver of requirement for additional hours. Rule 211. (1) A licensee who does not earn sufficient qualifying hours during the continuing education period may be allowed to renew a license upon reporting 80 qualifying hours and an additional 4 hours of continuing education credit for each month of time needed to remove the deficiency. The additional 4 hours of continuing education credit for each month of time needed to remove the deficiency shall not apply toward the qualifying hours of continuing education credit required in a continuing education period for the renewal of a license. (2) The department may waive the requirement for additional hours upon a showing by the licensee that the additional hours would present an undue hardship on the licensee.
R 338.5215 Acceptable continuing education; requirements; limitations.
Rule 215. (1) The continuing education hours required for renewal must satisfy the following requirements:
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Activity and Proof of Completion |
Number of Continuing Education Hours Earned for the Activity |
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(a) |
Attendance in a group program that satisfies all the following requirements:
- The - The program is conducted by an instructor or discussion
leader whose background, training, education, or experience makes it
appropriate for the instructor or discussion leader to lead a discussion on
the - The sponsor of the program takes individual attendance. - The sponsor of the program issues to each attendee a program outline and a written certification of the attendee’s hours of attendance. - The sponsor of the program keeps written records of individual attendance and the program outline for 4 years.
If audited, a licensee shall provide a copy of a letter or certificate of completion showing the licensee’s name, total continuing education hours earned, sponsor name and contact information, course title, course field of study, date offered or completed, and type of instruction or delivery method used. |
Fifty minutes of continuous instruction equals 1 continuing education hour.
Additional credit is granted after the first 50 minutes for continuous instruction in the following amounts:
One-half credit, One-fifth credit,
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Completion of an individual nano-learning program that satisfies all the following requirements:
- The - The program is an educational course designed for nano-learning delivery. - The program uses instructional methods that define a minimum of 1 learning objective. - The program guides the participant through a program of learning and provides proof verifying a participant’s satisfactory completion of the program. - The sponsor requires the participant to successfully complete a qualified assessment with a passing grade of 100% before issuing credit for the course. - The sponsor of the program issues the participants a written certification of the participants’ completion of the program and a program outline. - The sponsor of the program keeps written records of the participant’s completion of the program and the program outline for 4 years.
If audited, the licensee shall provide a copy of a letter or certificate of completion provided by the program sponsor verifying the licensee’s name, number of continuing education hours earned, sponsor name and contact information, course title, course field of study, date completed, and type of instruction or delivery method used. |
Credit is awarded as 1/5 credit,
A nano-learning course cannot be combined with another nano-learning course.
A combined maximum of 20 continuing education hours may be earned under this activity and activity (f) during each continuing education period. |
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(c) |
Passing a noncredit academic course that satisfies both of the following requirements:
- The - The course is offered by an educational institution that satisfies R 338.5115.
If audited, the licensee shall provide a letter from the institution confirming the name and course number of the course completed, number of classroom hours attended, and the date of satisfactory course completion. |
Each 50 minutes of continuous instruction equals 1 continuing education hour.
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(d) |
Passing a for-credit academic course that satisfies both of the following requirements:
- The - The course is offered by an educational institution that satisfies R 338.5115.
If audited, the licensee shall provide a copy of an official transcript or a letter from the institution confirming the name and course number of the course completed, credit hours earned, and date of satisfactory course completion. |
Fifteen continuing education hours are granted for each academic credit hour.
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Classroom work as a teacher, instructor, speaker, or
lecturer that is part of an academic course of which the
If audited, the licensee shall provide a copy of the confirmation letter provided by the program sponsor or the institution verifying the licensee’s name, number of hours of classroom work or hours spent conducting the group program, course title, course field of study, and dates of the presentation or instruction. |
Three continuing education hours are granted for every 50 minutes of continuous instruction.
A maximum of 20 continuing education hours may be earned during each continuing education period.
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(f) |
Completion of an individual self-study program that satisfies all the following requirements:
- The - The program is an educational course designed for self-study. - The sponsor of the program issues the participants a written certification of the participant’s completion of the program and a program outline. - The sponsor of the program keeps written records of the participant’s completion of the program and the program outline for 4 years.
If audited, the licensee shall provide a copy of a letter or certificate of completion provided by the program sponsor verifying the licensee’s name, number of continuing education hours earned, sponsor name and contact information, course title, course field of study, date completed, and type of instruction or delivery method used. |
Twenty-five minutes of continuous instruction equals ˝ credit (0.5 credit) of 1 continuing education hour.
One-fifth credit (0.2 credit) of 1 continuing education hour is granted for every additional 10 minutes of continuous instruction after the first 25 minutes of continuous instruction.
A combined maximum of 20 continuing education hours may be earned under this activity and activity (b) during each continuing education period. |
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(g) |
If audited, the licensee shall provide a copy of a letter or certificate of completion provided by the program sponsor verifying the licensee’s name, number of continuing education hours earned, sponsor name and contact information, course title, course field of study, date completed, and type of instruction or delivery method used. |
Continuing education hours are granted in an amount allowed under the type of activity for which the course qualifies. |
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(h) |
Completion of a course in Michigan statutes and rules applicable to public accountancy that satisfies all the following requirements:
- The content of the course is created by the Michigan Association of Certified Public Accountants. - The course provider issues the participants a written certification of the participant’s completion of the course and a course outline. - The sponsor of the program keeps written records of the participant’s completion of the course and the course outline for 4 years.
If audited, the licensee shall provide a copy of a letter or certificate of completion provided by the program sponsor verifying the licensee’s name, number of continuing education hours earned, sponsor name and contact information, course title, course field of study, date completed, and type of instruction or delivery method used. |
Fifty minutes of continuous instruction equals 1 continuing education hour.
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(2) Continuing education hours are not granted for a program or activity that has substantially equivalent content of a program or activity for which the applicant has already earned continuing education hours during the continuing education period.
R 338.5230 Relicensure; continuing education.
Rule 230. (1) An applicant for relicensure whose license has lapsed for less than 3 years after the expiration date of the last license may be relicensed under section 411(3) of the code, MCL 339.411, if the applicant satisfies both of the following requirements:
(a) Provides the required fee and a completed application on a form provided by the department.
(b) Provides proof, as directed by the department, verifying the completion of 40 hours of continuing education within the 12 months immediately preceding the date of filing the relicensure application. However, if the continuing education hours provided with the application are deficient, the application will be held by the department and the applicant shall provide proof, as directed by the department, verifying the completion of the deficient hours within 1 year after the date of filing the relicensure application. The 40 hours must satisfy all the following requirements:
(i) Satisfy the requirements of R 338.5215.
(ii) Eight of the 40 hours are in auditing and accounting.
(iii) Two of the 40 hours are in professional ethics.
(2) An applicant whose license has been lapsed for 3 or more years after the expiration date of the last license may be relicensed under section 411(4) of the code, MCL 339.411, if the applicant satisfies all the following requirements:
(a) Provides the required fee and a completed application on a form provided by the department.
(b) Establishes that the applicant holds a valid and unrevoked certificate as a CPA that was issued under section 725 or 726 of the code, MCL 339.725 or 339.726.
(c) Provides proof, as directed by the department, verifying the completion of 40 hours of continuing education within the 12 months immediately preceding the date of filing the relicensure application. However, if the continuing education hours provided with the application are deficient, the applicant has 1 year after the date of filing the application to provide proof, as directed by the department, verifying the completion of the deficient hours. The 40 hours must satisfy all the following requirements:
(i) Satisfy the requirements of R 338.5215.
(ii) Eight of the 40 hours are in auditing and accounting.
(iii) Two of the 40 hours are in professional ethics.
(iv) One of the 2 hours is in professional ethics that satisfies the requirements under R 338.5215(1)(h).
(3) The continuing education hours required for the continuing education period of the year in which the license is granted under this rule are prorated starting with the month following the date of relicensure.
(4) The department shall not calculate the period of a lapsed license based on a current or lapsed registration. A registrant whose license has lapsed for less than 3 years shall satisfy the requirements under subrule (1) of this rule. A registrant whose license has lapsed for 3 years or more shall satisfy the requirements under subrule (2) of this rule.
R 338.5255 Qualifying continuing education subjects.
content areas.
Rule 255. (1) Subjects Content areas qualifying
for continuing education include any of the following:
(a) Accounting.
(b) Auditing.
(c) Management advisory services.
(d) Information technology.
(e) Mathematics, statistics, probability, and quantitative application to business.
(f) Economics.
(g) Finance.
(h) Business law.
(i) Business management.
(j) Professional ethics for certified public accountants.
(k) Taxation.
(l) Financial advisory services.
(m) Business valuations.
(n) Any other subjects content areas which
that contribute to the professional competency of a licensee and for
which the responsibility for compliance rests solely with the licensure
applicant or licensee.
(2) Subjects Content areas that qualify for
continuing education in the study of professional ethics include any of the
following:
(a) Behavioral ethics in any of the following areas:
(i) Ethical reasoning.
(ii) Ethical philosophy.
(iii) Ethics enforcement.
(iv) Ethical practice in business.
(v) International ethical professional standards.
(b) Technical ethics in the following areas:
(i) Business transactions with clients.
(ii) Competence.
(iii) Conflict of interest.
(iv) Contingent fees, commissions, and other considerations.
(v) Discreditable acts.
(vi) General and professional standards.
(vii) Independence.
(viii) Integrity and objectivity.
(ix) Malpractice
(x) Professional conduct.
(xi) Public interest and responsibilities.
(xii) State rules and regulations.
(c) Any other subject content area in the
study of professional ethics that contributes to the professional competency of
a licensee and for which the responsibility for compliance rests solely with
the licensure applicant or licensee.
PART 4. PROFESSIONAL CONDUCT R 338.5501 Peer review. Rule 501. (1) Each firm or sole practitioner required to take part in a peer review program under section 729(2) of the code, MCL 339.729, shall enroll in the program of a qualified sponsoring organization within 1 year of the earlier of the following: (a) The firm or solo sole practitioner’s initial licensing date. (b) The performance of services that require a peer review. (2) The firm or sole practitioner shall not have to provide proof Proof verifying a peer review shall not have to be provided to the department until the second renewal following initial licensure or the performance of services requiring a peer review. (3) The department shall accept, as proof verifying compliance with section 729(2) of the code, MCL 339.729, the electronic submission of information from the facilitated state board access (FSBA) website. (4) Qualified sponsoring organizations include the AICPA peer review program, and other entities that adhere to the peer review standards defined in R 338.5102(1)(a) as decided by the board. With respect to an out-of-state firm required to obtain a license under section 728 of the code, MCL 339.728, a peer review sponsoring organization approved by another state in which that firm is licensed is presumed to be qualified in this state, with respect to that firm. (5) A licensee subject to peer review shall not be required to become a member of any sponsoring organization. (6) Out-of-state firms required to obtain a peer review under section 728(5) of the code, MCL 339.728, may, instead of enrolling in a program sponsored by an organization described in subrule (3) of this rule, satisfy the peer review requirement applicable in the state where that firm is licensed, verified proof of which shall be given to the department upon on the department’s request.